When you look at the whole world, there are many different factors that affect the environment. But did you think that cryptocurrency could affect the environment? Yes, excavation affects the environment.
Too much electricity is used for cryptocurrency mining. While many people are trying to invest in cryptocurrencies and become millionaires, they are also investing in electronic waste. For more information on Bitcoin trading visit Bitcoin SmartTour
If you have never been to this point in the past and have no idea how cryptocurrency can affect the environment, this blog might be helpful. Here we discuss how it affects and whether it contributes to climate change.
Let’s get started:
To verify any transaction that takes place through the cryptocurrency platform, you will need high power. Also, electricity is needed not only for the legitimacy of the transaction but also for the creation of new tokens. If you check the most popular cryptocurrency Bitcoin, it consumes about 123 terawatt hours of electricity. This is a lot more than what the United Arab Emirates or the Netherlands uses every year.
It takes more than 2000 kilowatt-hours to make just one block of bitcoin. This equates to an average of 72 days of electricity consumption for an American household.
The story repeats itself with Ethereum. Every year, Etherium uses 100 terawatt hours of electricity. It takes about 220 kilowatt-hours to make an etherium block. This equates to an average of 6 and a half days of electricity consumption for an American family.
This number is not certain as the amount of mining will increase in the future. It is not limited to a certain number per year. Also, there are many cryptocurrencies available in the crypto market and each currency follows the same mining process to create new coins. As the number of people adopting cryptocurrencies increases, the mining process becomes more complicated. That means more electricity is needed for this.
Why is it necessary?
You should stop seeing your energy consumption as a bug. This is one of the characteristics of any cryptocurrency that uses electricity for its mining process. Any cryptocurrency that works on proof-of-work will use electricity for mining just like gold physical mining. Mining workers will need high-tech hardware for the mining process. And to make sure the hardware runs properly, power is needed.
Its effects on the environment:
Now comes the key issue that we should understand, its impact on the environment. The amount of carbon dioxide produced by the excavation process is enormous. Bitcoin alone produces about 90 plus million tons of carbon dioxide each year. When it comes to Ethereum, it produces 45 plus million tons. Thus, it is almost equal to what a small country can produce overall in one year.
Most bitcoin mining is done in the United States, which equates to 37 percent. They are dependent on fossil fuels for power generation.
In addition to this, due to the excavation process, a huge amount of electronic waste is also generated. The hardware used for mining soon became obsolete. All of that is dumped into the environment again. Bitcoin alone generates 30,000 tons of electronic waste a year.
Can it use less energy?
Typically, mining occurs in areas where energy is cheap, plentiful, and reliable. But when it comes to creating new coins and legalizing transactions, it doesn’t have to be based on electricity alone.
One of the best options is the proof-of-steak method. You can use PoS to verify transactions and create new coins. They use very little computer power. There are many more ways to reduce energy costs for mining and the legitimacy of transactions. Taking some simple steps can help reduce the amount of energy required for cryptocurrency mining. But electronic waste is working to reduce the impact of cryptocurrency on the environment. Protecting the environment is very important to ensure that we send a green planet to the next generation.